considering the rampant inflation and cost of life in India at the moment i'm afraid it will soon be game over for many of these indian outsourcers in the photo, design, and software industry.
years ago i was wondering about setting up in Bangalore and the answer from their burocracy was a smack in my face, as a foreigner my only option would have been a joint venture with an indian partner.... not gonna happen ! add to that their new draconian visa rules .. would rather set up in Malaysia or Taiwan where we they still welcome us with open arms and living costs are still relatively cheap.